DougM

Wednesday Outlook: Commodities, Emerging Markets

Dave, love your column. Some possibilities re. the utilities decline:
1. Possible repeal of dividend tax rate under new president.
2. If long interest rates rise, bond-like equities could go lower.
3. Expensive renewable mandates - paid for by who?
4. Expensive grid upgrades needed - paid for by who?
And of course as you know
5. In a downtrend since last year - trend continues until it doesn't.
6. Just more stocks in the sell basket.

The Nuttiness of This Market

More and more of the market is likely being treated like a gambling casino by hedge funds. Eventually their well-heeled investors will wise up to the fact that the only ones really making money are the managers, who have every incentive to take big gambles to juice the returns, and no skin in the game if the bets go wrong. The fact that they can do all this and still pay the "long term capital gains" tax rate is an outrage.